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30 hours of free childcare - will my child get it?

The Government has announced it will be doubling free childcare from 2017. But, it turns out, free may not mean entirely free...

So what is the free childcare deal?

In a nutshell, many working parents of 3 to 4-year-olds in England will be eligible for 30 hours of free childcare - rather than the current 15 hours. This is for 38 weeks per year (not 52) - it's equivalent to school term times. In theory, you may be able to spread the free childcare out over further weeks, but this will mean you'll get fewer than 30 hours free childcare each week.

When will it start?

The Government is about to start rolling out a pilot scheme in 8 English areas: Wigan, Staffordshire, Swindon, Portsmouth, Northumberland, York, Newham and Hertfordshire. The scheme is scheduled to go nationwide in 2017.

Will my child get it?

Not everyone is eligible - the extra 15 hours are only available to working parents who work more than 16 hours a week and earn under £100,000 per year. This is different to the current free childcare scheme which is open to everyone.

This means parents who work 2 days a week or under are not eligible - although it looks like they will still receive the 15 hours free childcare that is currently available.

It also only applies to families living in England.

To be eligible for 30 hours free childcare:

Your child will be aged 3 or 4 when the scheme starts in your area

You'll work more than 16 hours per week

You'll have an annual income of less than £100,000

You'll live in England

Will all nurseries offer this?

Most will - but some nurseries may not be able to offer the flexible 30 hours free childcare.

There has been a lot of concern within the nursery industry that the grant supplied by the Government is not enough to cover the costs of the current scheme.

According to educational charity the Pre-school Learning Alliance, the true cost to provide the childcare is typically £4.53 per hour. For the pilot schemes, the Government is allocating £4 an hour - an underfunding of 17%. (Initially, the Government had offered to pay £3.88 but this was increased after nursery providers in York battled for more funding).

Why free childcare doesn't necessarily mean free

As the first trials are rolling out, there's concern that free childcare won't be quite as free as first appears. Basically, if the money isn't coming from the Government, then the shortfall is likely to be paid for by us, the parents.

Charging for extras...

While nurseries can't charge for the 30 hours, they can charge for other 'extras' or ask for contributions. One nursery in York (one of the pilot areas) will be adding a new charge for food, whereas previously this had been included in the overall cost.

"I'm introducing a charge, which is something that was never there beforehand," one nursery owner in York told Radio 4's Today programme. "I'm now going to introduce a funded hours charge, which includes the meals which we've been providing, in a lot of cases totally for free."

Another York nursery is asking parents to pay £5 per day as a voluntary contribution.

Higher charges for babies and toddlers

Others may charge more for babies and under 2s, to subsidise the cost of the free childcare for the older children.

Term-by-term booking

Parents who are getting completely free childcare may find that they can only secure a nursery place on a term-by-term basis. This means they may need to re-apply each term and may not be guaranteed the same days or place allocation each term. This lack of certainty could prove a headache for the majority of parents who don't have flexible work hours.

Will the Government increase the funding?

In November 2015, the then-Chancellor George Osborne announced in his Autumn Statement that the Government was going to invest a further £300m in early years providers, increasing the hourly rate to an average of £4.88 from 2017. He also announced that nurseries will be given £50m in capital investment to provide more places.

There was a cautiously positive response from the nursery industry.

The Chief Executive of National Day Nurseries Association, Purnima Tanuku OBE, says, “We are pleased the Government has listened to our campaigning for better levels of funding. Despite the tough fiscal climate, the childcare sector is receiving more money. This is a welcome step.

“The sector is now looking carefully at the details to establish whether the increase is sufficient to support the Government’s ambitious promise of 30 hours free childcare to working parents. The Government must work to make sure that every penny secured for early years goes straight to the frontline of childcare."

No doubt, the pilot areas will be monitored carefully as the Government makes further decisions around funding.

You probably know everything about the current childcare entitlement but just in case…

Currently, 3 and 4-year-old children are eligible for 570 hours of childcare a year – which is usually broken down to 15 hours each week over 38 weeks of the year . This covers:

Nurseries and nursery classes

Playgroups and pre-school

Childminders

Sure Start Children’s Centres

Depending on income levels, some 2-year-olds in England can get free early education and childcare. In order to get claim, you must be getting one of the following:

Income Support

Income-based Jobseeker’s Allowance (JSA)

Income-related Employment and Support Allowance (ESA)

Support through part 6 of the Immigration and Asylum Act

Child Tax Credit and/or Working Tax Credit and have an annual income under £16,190

The guaranteed element of State Pension Credit

The Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)